Credit Card Cheque transfers

[OU812]

Got a quick question I would appreciate clarification on.

I currently have a large credit amount on my HELOC. The current rate is 4%. The interest is revolving. I have the option of paying just interest but obviously pay more each month.

I have received some cheques which offer a rate of 2.99% for 6 months on any accounts transferred over.

I am thinking of transferring my HELOC balance over for 5 months to gain the extra point and then at that time transfer the balance back to my HELOC.

Are there any disadvantages I am missing here?

[rage2]

Read the fine print. There's usually a lot of gotchas that'll increase that 2.99% to a higher interest rate. If you don't use your cc at all, then it's pretty safe. Some of the common gotchas are:

1. If you use your cc, and make a payment, it goes towards the transfer first, so all your purchases will be at the normal 20% or whatever rate until the full transfer is paid off.

2. If you hit your credit limit, the promo rate jumps back to a normal rate. If you're pushing your card to the max, a restaurant or gas station charge can put you over since they put a temp hold of a higher value on the card.

3. If you miss a payment, the promo rate jumps back to a normal rate.

4. Wait for a better rate. cc companies often offer 0% rates on transfers. It's not worth it for that 1% if you have to rely on your cc once in a while.

[Team_Mclaren]

you also dont get any points for balance transfer.

[Tripz]

RBC has a HELOC rate of 3.5% but I believe you end up paying set-up fees for it. CIBC can match the 3.5% and waive the set-up fee for you, just something to consider if you dont end up going the cc cheque route.